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Revenue Recognition | 9 Months Ended
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Sep. 30, 2024
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Revenues The Company recognizes revenues to depict the transfer of promised services and products to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services and products. Service revenues include CE and the service components of HE and Rail. Product revenues include portions of HE and Rail. A summary of the Company's revenues by primary geographical markets as well as by key product and service groups is as follows:
|  | Three Months Ended
|  | September 30, 2024
(In thousands) |  | Harsco Environmental Segment |  | Clean Earth Segment |  | Harsco Rail Segment |  |  |  | Consolidated Totals
Primary Geographical Markets (a): |  |  |  |  |  |  |  |  |  |
North America |  | $ | 70,316 |  |  | $ | 236,791 |  |  | $ | 31,644 |  |  |  |  | $ | 338,751 |
Western Europe |  | 108,709 |  |  | — |  |  | 21,294 |  |  |  |  | 130,003 |
Latin America (b) |  | 38,195 |  |  | — |  |  | 247 |  |  |  |  | 38,442 |
Asia-Pacific |  | 31,333 |  |  | — |  |  | 4,503 |  |  |  |  | 35,836 |
Middle East and Africa |  | 26,327 |  |  | — |  |  | — |  |  |  |  | 26,327 |
Eastern Europe |  | 4,268 |  |  | — |  |  | — |  |  |  |  | 4,268 |
Total Revenues |  | $ | 279,148 |  |  | $ | 236,791 |  |  | $ | 57,688 |  |  |  |  | $ | 573,627 |
Key Product and Service Groups: |  |  |  |  |  |  |  |  |  |
Environmental services related to resource recovery for metals manufacturing and related logistical services |  | $ | 235,490 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 235,490 |
Ecoproducts |  | 36,663 |  |  | — |  |  | — |  |  |  |  | 36,663 |
Environmental systems for aluminum dross and scrap processing |  | 6,995 |  |  | — |  |  | — |  |  |  |  | 6,995 |
Railway track maintenance equipment |  | — |  |  | — |  |  | 19,099 |  |  |  |  | 19,099 |
After market parts and services; safety and diagnostic technology |  | — |  |  | — |  |  | 23,495 |  |  |  |  | 23,495 |
Railway contracting services |  | — |  |  | — |  |  | 15,094 |  |  |  |  | 15,094 |
Hazardous waste processing solutions |  | — |  |  | 194,557 |  |  | — |  |  |  |  | 194,557 |
Soil and dredged materials processing and reuse solutions |  | — |  |  | 42,234 |  |  | — |  |  |  |  | 42,234 |
Total Revenues |  | $ | 279,148 |  |  | $ | 236,791 |  |  | $ | 57,688 |  |  |  |  | $ | 573,627 |
|  | Three Months Ended
|  | September 30, 2023
(In thousands) |  | Harsco Environmental Segment |  | Clean Earth Segment |  | Harsco Rail Segment |  |  |  | Consolidated Totals
Primary Geographical Markets (a): |  |  |  |  |  |  |  |  |  |
North America |  | $ | 78,528 |  |  | $ | 238,711 |  |  | $ | 50,322 |  |  |  |  | $ | 367,561 |
Western Europe |  | 109,473 |  |  | — |  |  | 20,294 |  |  |  |  | 129,767 |
Latin America (b) |  | 44,351 |  |  | — |  |  | 700 |  |  |  |  | 45,051 |
Asia-Pacific |  | 25,787 |  |  | — |  |  | 1,064 |  |  |  |  | 26,851 |
Middle East and Africa |  | 22,673 |  |  | — |  |  | — |  |  |  |  | 22,673 |
Eastern Europe |  | 5,065 |  |  | — |  |  | — |  |  |  |  | 5,065 |
Total Revenues |  | $ | 285,877 |  |  | $ | 238,711 |  |  | $ | 72,380 |  |  |  |  | $ | 596,968 |
|  | Three Months Ended
|  | September 30, 2023
(In thousands) |  | Harsco Environmental Segment |  | Clean Earth Segment |  | Harsco Rail Segment |  |  |  | Consolidated Totals
Key Product and Service Groups: |  |  |  |  |  |  |  |  |  |
Environmental services related to resource recovery for metals manufacturing and related logistical services |  | $ | 234,274 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 234,274 |
Ecoproducts |  | 43,841 |  |  | — |  |  | — |  |  |  |  | 43,841 |
Environmental systems for aluminum dross and scrap processing |  | 7,762 |  |  | — |  |  | — |  |  |  |  | 7,762 |
Railway track maintenance equipment |  | — |  |  | — |  |  | 24,531 |  |  |  |  | 24,531 |
After market parts and services; safety and diagnostic technology |  | — |  |  | — |  |  | 31,310 |  |  |  |  | 31,310 |
Railway contracting services |  | — |  |  | — |  |  | 16,539 |  |  |  |  | 16,539 |
Hazardous waste processing solutions |  | — |  |  | 194,927 |  |  | — |  |  |  |  | 194,927 |
Soil and dredged materials processing and reuse solutions |  | — |  |  | 43,784 |  |  | — |  |  |  |  | 43,784 |
Total Revenues |  | $ | 285,877 |  |  | $ | 238,711 |  |  | $ | 72,380 |  |  |  |  | $ | 596,968 |
|  | Nine Months Ended
|  | September 30, 2024
(In thousands) |  | Harsco Environmental Segment |  | Clean Earth Segment |  |  |  | Harsco Rail Segment |  |  |  | Consolidated Totals
Primary Geographical Markets (a): |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 238,553 |  |  | $ | 698,926 |  |  |  |  | $ | 129,119 |  |  |  |  | $ | 1,066,598 |
Western Europe |  | 328,604 |  |  | — |  |  |  |  | 61,318 |  |  |  |  | 389,922 |
Latin America (b) |  | 122,396 |  |  | — |  |  |  |  | 3,205 |  |  |  |  | 125,601 |
Asia-Pacific |  | 88,593 |  |  | — |  |  |  |  | 20,173 |  |  |  |  | 108,766 |
Middle East and Africa |  | 79,858 |  |  | — |  |  |  |  | — |  |  |  |  | 79,858 |
Eastern Europe |  | 13,192 |  |  | — |  |  |  |  | — |  |  |  |  | 13,192 |
Total Revenues |  | $ | 871,196 |  |  | $ | 698,926 |  |  |  |  | $ | 213,815 |  |  |  |  | $ | 1,783,937 |
Key Product and Service Groups: |  |  |  |  |  |  |  |  |  |  |  |
Environmental services related to resource recovery for metals manufacturing and related logistical services |  | $ | 747,303 |  |  | $ | — |  |  |  |  | $ | — |  |  |  |  | $ | 747,303 |
Ecoproducts |  | 107,190 |  |  | — |  |  |  |  | — |  |  |  |  | 107,190 |
Environmental systems for aluminum dross and scrap processing |  | 16,703 |  |  | — |  |  |  |  | — |  |  |  |  | 16,703 |
Railway track maintenance equipment |  | — |  |  | — |  |  |  |  | 79,535 |  |  |  |  | 79,535 |
After-market parts and services; safety and diagnostic technology |  | — |  |  | — |  |  |  |  | 89,502 |  |  |  |  | 89,502 |
Railway contracting services |  | — |  |  | — |  |  |  |  | 44,778 |  |  |  |  | 44,778 |
Hazardous waste processing solutions |  | — |  |  | 581,341 |  |  |  |  | — |  |  |  |  | 581,341 |
Soil and dredged materials processing and reuse solutions |  | — |  |  | 117,585 |  |  |  |  | — |  |  |  |  | 117,585 |
Total Revenues |  | $ | 871,196 |  |  | $ | 698,926 |  |  |  |  | $ | 213,815 |  |  |  |  | $ | 1,783,937 |
|  | Nine Months Ended
|  | September 30, 2023
(In thousands) |  | Harsco Environmental Segment |  | Clean Earth Segment |  |  |  | Harsco Rail Segment |  |  |  | Consolidated Totals
Primary Geographical Markets (a): |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 238,617 |  |  | $ | 691,750 |  |  |  |  | $ | 163,934 |  |  |  |  | $ | 1,094,301 |
Western Europe |  | 318,177 |  |  | — |  |  |  |  | 44,858 |  |  |  |  | 363,035 |
Latin America (b) |  | 127,486 |  |  | — |  |  |  |  | 1,865 |  |  |  |  | 129,351 |
Asia-Pacific |  | 87,087 |  |  | — |  |  |  |  | 15,623 |  |  |  |  | 102,710 |
Middle East and Africa |  | 62,195 |  |  | — |  |  |  |  | — |  |  |  |  | 62,195 |
Eastern Europe |  | 15,097 |  |  | — |  |  |  |  | — |  |  |  |  | 15,097 |
Total Revenues |  | $ | 848,659 |  |  | $ | 691,750 |  |  |  |  | $ | 226,280 |  |  |  |  | $ | 1,766,689 |
Key Product and Service Groups: |  |  |  |  |  |  |  |  |  |  |  |
Environmental services related to resource recovery for metals manufacturing and related logistical services |  | $ | 706,273 |  |  | $ | — |  |  |  |  | $ | — |  |  |  |  | $ | 706,273 |
Ecoproducts |  | 122,747 |  |  | — |  |  |  |  | — |  |  |  |  | 122,747 |
Environmental systems for aluminum dross and scrap processing |  | 19,639 |  |  | — |  |  |  |  | — |  |  |  |  | 19,639 |
Railway track maintenance equipment |  | — |  |  | — |  |  |  |  | 98,771 |  |  |  |  | 98,771 |
After-market parts and services; safety and diagnostic technology |  | — |  |  | — |  |  |  |  | 93,633 |  |  |  |  | 93,633 |
Railway contracting services |  | — |  |  | — |  |  |  |  | 33,876 |  |  |  |  | 33,876 |
Hazardous waste processing solutions |  | — |  |  | 578,545 |  |  |  |  | — |  |  |  |  | 578,545 |
Soil and dredged materials processing and reuse solutions |  | — |  |  | 113,205 |  |  |  |  | — |  |  |  |  | 113,205 |
Total Revenues |  | $ | 848,659 |  |  | $ | 691,750 |  |  |  |  | $ | 226,280 |  |  |  |  | $ | 1,766,689 |
(a) Revenues are attributed to individual countries based on the location of the facility generating the revenue. (b) Includes Mexico. The Company may receive payments in advance of earning revenue (advances on contracts), which are included in Current portion of advances on contracts and Other liabilities on the Condensed Consolidated Balance Sheets. The Company may recognize revenue in advance of being able to contractually invoice the customer (contract assets), which is included in Current portion of contract assets and Other assets on the Condensed Consolidated Balance Sheets. Contract assets are transferred to Trade accounts receivable, net, when the right to payment becomes unconditional. Contract assets and advances on contracts are reported as a net position, on a contract-by-contract basis, at the end of each reporting period. These instances are primarily related to Rail. The Company had contract assets totaling $107.9 million and $86.9 million at September 30, 2024 and December 31, 2023, respectively. The Company had advances on contracts totaling $28.3 million and $38.6 million at September 30, 2024 and December 31, 2023, respectively. During the three and nine months ended September 30, 2024, the Company recognized $4.8 million and $25.3 million, respectively, of revenue related to amounts previously included in advances on contracts. During the three and nine months ended September 30, 2023, the Company recognized revenues of $13.3 million and $35.8 million, respectively, related to amounts previously included in advances on contracts. At September 30, 2024, HE had remaining, fixed, unsatisfied performance obligations where the expected contract duration exceeds one year totaling $73.7 million. Of this amount, $21.7 million is expected to be fulfilled by September 30, 2025, $17.7 million by September 30, 2026, $14.1 million by September 30, 2027, $11.8 million by September 30, 2028 and the remainder thereafter. These amounts exclude any variable fees, fixed fees subject to indexation and any performance obligations expected to be satisfied within one year. At September 30, 2024, Rail had remaining, fixed, unsatisfied performance obligations where the expected contract duration exceeds one year totaling $119.0 million. Of this amount, $54.9 million is expected to be fulfilled by September 30, 2025, $27.3 million by September 30, 2026, $21.0 million by September 30, 2027, $6.9 million by September 30, 2028 and the remainder thereafter. These amounts exclude any variable fees, fixed fees subject to indexation and any performance obligations expected to be satisfied within one year. Rail is currently manufacturing highly-engineered equipment under large long-term fixed-price contracts with SBB, Network Rail, and Deutsche Bahn. As previously disclosed, the Company recognized estimated forward loss provisions in 2021, 2022 and 2023 related to these contracts due to several factors, such as material and labor cost inflation, supply chain delays, the bankruptcy of a key vendor and increased engineering efforts. For the Network Rail contract, the Company recorded an additional loss provision of $11.2 million in the third quarter of 2024, primarily related to delays in the estimated delivery of the machines and increased engineering and manufacturing costs primarily as a result of design changes. For the nine months ended September 30, 2024, the forward loss provision totaled $13.3 million. It is possible there may be additional delays in the project requiring additional costs to be recorded in the future, which could have a material impact on the Company's results in that period. During the nine months ended September 30, 2023, the Company reversed a portion of its previous estimated loss provision adjustment in the amount of $23.5 million. The favorable adjustment was the result of an amendment to the contract with Network Rail which extended the delivery schedule for the machines and reduced the estimate of liquidated damages. The majority of the reduction in liquidated damages was recorded as an increase to revenue and contract assets. Partially offsetting this were higher estimated material, engineering and labor costs due to additional experience gained during the manufacturing process. For the Deutsche Bahn contract, the Company recorded an additional loss provision of $7.2 million during the nine months ended September 30, 2024 related to supplier price increases, challenges with supplier quality on key components and increased engineering efforts that exceeded previous estimates. During the third quarter of 2023, the Company recorded an additional forward loss provision of $2.4 million. For the nine months ended September 30, 2023, the forward loss provision totaled $10.8 million. The additional loss provisions were due to increased costs related to a critical supplier that had filed for bankruptcy in 2022 and ceased operations during the second quarter of 2023, as well as an increase in estimated component costs and engineering costs. For the SBB contract, during the third quarter of 2024, the Company recorded a favorable adjustment of $0.7 million. For the nine months ended September 30, 2024, the net reduction totaled $0.5 million. For the nine months ended September 30, 2023, the Company recorded an additional forward loss provision of $6.1 million due to increased costs related to estimates for material, engineering and commissioning costs for the remaining vehicles. The estimated forward loss provisions represent the Company's best estimate based on currently available information. It is possible that the Company's overall estimate of liquidated damages, penalties and costs to complete these contracts may change, which could result in an additional estimated forward loss provision at such time that could be material. The Company will continue to update its estimates to complete these contracts, which will include the effect of negotiations with the customers regarding price increases, change orders and extensions to delivery schedules. As of September 30, 2024, the contracts with Network Rail, Deutsche Bahn and SBB are 63%, 46% and 90% complete, respectively, based on costs incurred. The Company provides assurance type warranties primarily for product sales at Rail. These warranties are typically not priced or negotiated separately (there is no option to separately purchase the warranty) or the warranty does not provide customers with a service in addition to the assurance that the product complies with agreed-upon specifications. Accordingly, such warranties do not represent separate performance obligations.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
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